Close Up: What Exactly Has Trump Promised The Crypto Sector?

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As a seasoned crypto investor with a knack for spotting political trends that impact digital assets, I find myself intrigued by the recent developments surrounding Trump’s renewed interest in the cryptocurrency realm. Having witnessed Bitcoin’s historic surge on election night and the subsequent promises made by Trump to maintain the federal government’s bitcoin holdings, I can’t help but feel a sense of optimism for the future of my investments.

Trump seldom talked about cryptocurrency until now, but it’s become a major contributor to his campaign finances and related political action committees. To solidify this backing, he’s made considerable pledges to the crypto community, surprisingly, without any mention of Bitcoin or cryptocurrencies in Project 2025 at all.

On election night, the digital asset markets showed great excitement. As it appeared that Donald Trump might win, Bitcoin’s value, according to Brave New Coin’s Bitcoin Liquid Index, soared to an all-time high of more than $75,000. Companies tied to cryptocurrency, like Coinbase and MicroStrategy, also experienced growth in after-hours trading.

Trump’s Pledge to Hold Onto Government-Owned Bitcoin

In July, Trump was the main speaker at the biggest Bitcoin conference held annually in Nashville. In his key address, he pledged that should he regain the presidency, the U.S. government would not liquidate any of its Bitcoin assets.

Trump emphatically stated, “Our administration has disregarded a fundamental principle that every bitcoin holder internalizes – refrain from selling your bitcoins.

He pledged to preserve the existing quantity of Bitcoin that the U.S. has obtained from confiscating assets linked to financial misdeeds. “Should I be elected, my administration, the United States of America, will uphold a policy to retain 100% of all the bitcoin the U.S. government currently holds or acquires in the future,” he declared.

Presently, the U.S. Marshals Service often conducts auctions for Bitcoin and other digital currencies that are stored within government funds. These sales might occasionally cause a decrease in cryptocurrency values, as observed earlier this year when Germany started liquidating hundreds of millions of dollars’ worth of confiscated Bitcoin.

Plans to Shake Up Crypto Regulation Leadership

Trump has made it clear that he wants to dismiss Gary Gensler from his role as Chairman of the U.S. Securities and Exchange Commission. In his words, “On my first day, I will terminate Gary Gensler,” referring to the SEC chair appointed by President Joe Biden, who has adopted a firm stance on cryptocurrency regulation.

Nevertheless, it’s important to note that the president doesn’t have the power to dismiss the SEC chair personally. If Trump selects a new chairperson, Gensler will still serve as a commissioner within the autonomous agency. Throughout his term, Gensler has taken over 100 actions against cryptocurrency companies, insisting that a significant portion of the industry falls under the SEC’s supervision. Cryptocurrency businesses contend that these legal skirmishes haven’t provided the regulatory clarity they need and instead constitute an excessive reach by the commission.

To alleviate these issues, Trump proposed the creation of a “Presidential Advisory Council for Bitcoin and Cryptocurrencies.” He emphasized that the regulations would be crafted by individuals who are supportive of your sector, rather than those with hostility towards it.

Meeting with Bitcoin Mining Leaders

In June, at his Mar-a-Lago Club in Palm Beach, Florida, Donald Trump held a private meeting with around a dozen Bitcoin mining professionals and experts. This was his inaugural gathering with the tech-savvy individuals who sustain the $1.5 trillion Bitcoin system by running large-scale computer arrays.

At this private event, attendees represented significant mining corporations such as Riot Platforms, Marathon Digital Holdings, Terawulf, CleanSpark, and Core Scientific. Not long after the conference, Trump expressed his admiration for the bitcoin mining sector on social media platforms.

Biden’s dislike for Bitcoin advantageously supports China, Russia, and the Radical Communist Left. Instead, we aim to have all remaining Bitcoins produced in America! This would boost our energy independence!” He recently expressed this sentiment on Truth Social. Since then, he has consistently shown his endorsement for domestic cryptocurrency mining.

In Nashville, Trump voiced his dream for America to take the lead in the global cryptocurrency sector, not just by mining and minting it, but also by manufacturing it at home. Moreover, he was optimistic that the country would produce so much electricity that its citizens might actually ask for a reduction due to an overwhelming surplus.

Commitment to Lower Interest Rates

In August, Trump declared that should he win the election, he’d strive to decrease interest rates. However, it’s important to note that the Federal Reserve, which controls the key interest rate and directs monetary policy, functions independently from the White House. Nonetheless, Trump made clear his desire to exert some influence over rate decisions.

In September, the Chairman of the Federal Reserve, Jerome Powell, reduced interest rates by half a percentage point, marking the first loosening of monetary policy in four years. Typically, decreases in interest rates and easier monetary policies have been associated with increases in the prices of cryptocurrencies due to cheaper borrowing costs.

Under Republican control of the Senate, Trump may encounter minimal barriers in advancing a pro-cryptocurrency platform. His pledges suggest a possible transformation in the federal government’s approach towards digital money and the blockchain sector.

Trump’s viewpoint on cryptocurrencies significantly differs from individuals such as Senator Elizabeth Warren, whom he perceives as adversaries within the crypto sector. His views have sparked enthusiasm among crypto advocates who believe his policies could lead to wider acceptance and fewer regulatory obstacles.

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2024-11-07 19:52